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Summary: In this paper, a new fuzzy lead‐lag controller for a coordinated structure combining static synchronous series compensator and power system stabilizer is designed to improve the power system stability. The controller parameters are optimized by using a modified whale optimization algorithm (MWOA). The newly proposed MWOA attains a suitable balance among exploration and exploitation phases of WOA. This potential of this MWOA is certified by means of utilizing the benchmark functions and by further comparing with that of a few heuristic algorithms such as whale optimization algorithm, fast evolutionary programming algorithm, gravitational search algorithm, differential evolution, and particle swarm optimization. Here, the MWOA technique is utilized to tune the parameters of the proposed controller. The controller is tested under various loading conditions as well as system configurations such as single‐machine infinite bus system and multimachine power system. Finally, the simulation results so obtained using the designed controller under different disturbance conditions are contrasted with that of the conventional lead‐lag structure controller. [ABSTRACT FROM AUTHOR]